Business Reference Guide: Economic Growth & Development (PDF)

The volume begins with an essay by Simone I. Flynn that highlights the main theories of economic growth. These
theories include neoclassical growth theory, new growth theory, and modern political growth theory. Of these concepts,
the two that pertain to national growth are the neoclassical and new growth theories; according to Marie Gould,
because “the aid per capita to developing countries was reduced by one third in the 1990s,” more individuals will
likely be turning their attention to these two theories to help spur economic growth in developing nations. Gould also
provides some insight as to which policies and procedures multinational corporations should adopt to assist with the
economic growth of underdeveloped countries. In building off Gould’s work, Francis Duffy suggests that multinational
business should end the zero-sum games of international economic development, and concentrate instead on
applying more methods that will create a win-win situation for all sides. Due to the lack of balance between nations,
the gap of disparity between developed nations and developing nations continues to grow. To help lessen the distance
between the two types of nations, Flynn proposes that countries address the prominent issues affecting developing
areas and their respective cultural and historical contexts. As Steven R. Hoagland and Gould discuss, there are many
approaches that developing nations can use to achieve economic maturation. These maturing countries often attract the
attention of multinational corporations constantly looking for growth opportunities and emerging markets.